High energy costs turn users green
13 July 2022
It might be cold comfort but a side-effect of the spiralling energy costs has been wider interest and greater take-up of equipment powered by greener power sources, according to a number of hirers that I’m talking to.
A year ago, a story on the site discussed the likelihood of this owing to the fact that inflation was then beginning to rise throughout industry generally and the resultant higher costs had to be passed on to customers.
It also pointed out that the government’s removal of the red diesel rebate in the construction industry would raise fuel prices once it came into effect in April 2022.
And this has proved to be the case, making equipment powered by batteries, solar panels and other energy sources that can cut running costs more popular, despite the initial higher price tag.
Moreover, the dramatic rise in fossil fuel prices as a result of the Ukraine conflict has accelerated this change very sharply.
When I spoke to him at the recent Rail Live exhibition in Warwickshire, Daryl Doherty, Speedy’s rail director told me that “There’s been probably more interest from the rail industry in this kind of equipment in the last 18 months than over the previous 18 years.”
As previously discussed on the blog, many other hirers like Smiths Equipment Hire have reported growing interest in green equipment. Another is the specialist hirer of eco-friendly products, ThinkHire.
Indeed, Neil Richardson, ThinkHire’s managing director, told me recently: “There are two elements to the transition towards green products. One is the legislation that is driving organisations towards meeting sustainability targets, and the other is that green energy is no longer being seen as more expensive.
“The reality now is that with rising fuel prices, if you cut carbon you’re cutting costs by moving to alternative power sources. And so many types of product can now be powered by batteries.”
And this trend can only continue.
Back in February, when he was chancellor and before he threw his hat into the ring for the current Conservative party leadership elections, Rishi Sunak introduced support measures to help people struggling with higher fuel bills. He cited causal factors like China’s shift away from coal driving demand for gas and Russia’s invasion of Ukraine disrupting oil supplies.
At the time he said: “It is not sustainable to keep holding the price of energy artificially low. For me to stand here [in the House of Commons] and pretend we don’t have to adjust to paying higher prices would be wrong and dishonest.”
Hence, perhaps, the govertnment's focus on directing financial support to those facing hardship rather than reducing prices or the tax revenue derived from fuels.
In other words, high energy prices won’t be going away any time soon and we must get used to them.
So it might be cold comfort but the result is that it’s placing green equipment squarely on the agenda, and end users will look to hirers to supply it.
